Volkswagen plans to enter the Chinese auto industry by launching its new ID.4 electric models

On Tuesday, Volkswagen AG (VOWG_p.DE) released its two ID.4 electric sport-utility car models in China.

The German automaker company said that it would start a significant push to enter the world’s biggest auto market. The firm also added that it plans to compete with NIO Inc. and Tesla Inc. (TSLA).

Volkswagen did not disclose the price of its two car models. However, the company’s presentation at the product launch stated that the SUVs’ starting price would be less than 250,000 Yuan ($37,450), including electric vehicle subsidies from the Chinese government.

According to China’s State Council, sales forecasts of electric, plug-in hybrid, and hydrogen-powered vehicles in the country were expected to rise by 20% in the next five years.

Volkswagen Group China’s Chief Executive Officer Stephan Woellenstein stated that the company would roll out eight ID. family electric models in the country by 2023.

Around 1.1 Million vehicles were sold in China this year.